Accounting concerns and declining telecoms, pharmaceutical and brewing stocks have led the FTSE 100 ...
Accounting concerns and declining telecoms, pharmaceutical and brewing stocks have led the FTSE 100 share index down 66 points this morning to 4,476, and worse could yet be on the way.
The government is expected to release industrial output figures at 9.30AM showing that production increased by just 0.1% in May, well down on April's 1.1% increase.
The figures have been widely leaked ahead of the official release, and most analysts are taking it as a sign that the UK economy is still finely balanced between modest growth and recession.
Depending on what other economic indicators say in the next few weeks, there could be another difficult meeting ahead for the Bank of England's Monetary Policy Committee in early August to set interest rates - currently still at their lowest for four decades.
Accounting concerns hit Capita Group in the market yesterday, but the stock has failed to rebound today, losing another 14.5p to 261.5p.
Brewer SABMiller shed 21p to 509p after it said it would need to issue more new shares to raise cash for possible further acquisitions.
SAB already paid more than $5bn to acquire US brewer Miller recently, but the company says further consolidation in the industry is expected in coming months.
Vodafone is below 90p at 89p this morning after losing 3p on overnight news that its Australian subsidiary may have to shed people to stay in the black.
AstraZenica is off by 81p to £25.65 after the Dutch drugs regulator yesterday said the firm had used illegal sales tactics to sell drugs in the Dutch market.
Good earnings news at Man Group has had the opposite effect this morning, pushing up its share price by 25p to £11.15.
The fund manager says its funds attracted another $1bn in the second quarter, mainly due to ongoing demand for hedge funds to replace poorly performing traditional funds - Man Group is the biggest hedge fund manager.
Abbey National is the best performing banking stock, up 7p at 802p following a favourable credit rating applied yesterday by Standard & Poor's.
The FSTE 250 mid-cap index is also down today, off by 48 points at 5,278, led down by support services firm Serco, which is being caught along with Amey in the 'will-they-won't-they' London Underground PPP dispute - Serco is off by 23.5p to 136.5p
Big Food Group, formerly Iceland, is down by 7.75p at 98.25p after releasing disappointing results.
The mid-cap gainers are being led by British Energy, up 3.75p to 143.75p two days after declaring a solid dividend.
Markets dropped in New York yesterday.
The Dow Jones Industrial Average index shed 178.81 points to 9,096.09, the Nasdaq Composite shed 24.29 points to 1,381.12.
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